Transfer Between Anomaly (example)

[akahrim]

Mark...I am trying to do a Transfer Between investment A and investment B.

Here is the data before the transfer:
Investment A has 200 shares @ $20 (price) for a value of $4000.
Investment B has 100 shares @ $10 (price) for a value of $1000.
Total portfolio value is (A+B) = $5000.

Transfer Wizard inputs by me Are: Market value=$1000, shares out=50, shares in=50, shares available=200. Accounting Method FIFO

Here is the data after the transfer:
Investment A has 150 shares @ $20 (price) for a value of $3000.
Investment B has 150 shares @ $10 (price) for a value of $1500
Total portfolio value is (A+B) = $4500.

Should'nt the total portfolio value (A+B) before and after the transfer be the same (i.e.) $5000?

Where did the $450 delta between (A+B) go after the transfer?
Please advise.
Thanks
AK

[Mark]

Hi AK,

The market value of the current market value of the transferred in shares doesn't have to be the market value of the transferred shares. It is similar to when you buy something at a certain price, but later the market price is different. In this example, you are trading 50 shares valued at $20/share for 50 shares of something different valued at $10/share. So, you are taking out $1,000 and only putting in $500, thus the $500 decrease in value.

[akahrim]

Mark...thanks for your explanation.

I want to move money between my savings account and a Money Market fund, and vice versa.

What functions or operations should I use to do that, and have the values going back and forth be the same for each transaction?

Thanks
AK

[Mark]

Hi AK,

For your savings and money market everything should be at a price of $1, so this shouldn't be an issue. In general, I'd suggest just using a buy and sell instead of a transfer. It is simpler, and you don't need to worry about keeping cost basis, separating lots, etc. with cash. So, when you transfer $1,000, record a sell of 1,000 shares at a price of $1, and then a buy of 1,000 shares at a price of $1.

[akahrim]

Mark...thanks again.
AK